Ben Worthen at the WSJ wrote a very compelling piece last week – Start-Ups Emerge as Tech Vendors of Choice. Owners of sub $50m businesses should take note of Ben’s points:
- Vanguard Health Systems spends $100m on technology and buys from the Big Guys. However they chose Explorys Inc, a start-up to help spot trends in clinical data. Why? Costs were less and the software could get up and running faster.
- Many CIOs with large tech budgets say smaller companies are now quicker to embrace new computing models, have products that are easier to deploy, and tend to respond better to customers than the giants.
- CIO Executive Council gave their top vendors a score of only 3.23/10 across 20 categories. I call it the complacency of the big boys.